The Manufacturing of Markets
Legal, Political and Economic Dynamics

Leading scholars from law, political science and economics explore the challenges in designing efficient markets in both private and public sector.

Eric Brousseau (Edited by), Jean-Michel Glachant (Edited by)

9781107677326, Cambridge University Press

Paperback / softback, published 9 January 2020

547 pages, 26 b/w illus. 9 tables
22.8 x 15 x 2.6 cm, 0.8 kg

'Eric Brousseau and Jean-Michel Glachant have assembled a fascinating set of contributions that discuss the institutional arrangements that contribute to the 'manufacturing' of markets for goods and services … The chapters in this book provide important insights about how these institutional choices have been made in many different contexts, drawing on lessons from economics, political science, organizational behavior, psychology and law. There is much to learn from these chapters for both scholars and policymakers.' Paul L. Joskow, President, Alfred P. Sloan Foundation, and Elizabeth and James Killian Professor of Economics, Emeritus, Massachusetts Institute of Technology

Different types of markets exist throughout the world but how are they created? In this book, an interdisciplinary team of authors provide an evolutionary vision of how markets are designed and shaped. Drawing on a series of case studies, they show that markets are far from perfect and natural mechanisms, and propose a new view of markets as social construct, explaining how combinations of economic, political and legal constraints influence the formation and performance of markets. Historical trajectories and interdependencies among institutional dimensions make it difficult to build costless, non-biased co-ordination mechanisms, and there are limitations to public and private attempts to improve the design of markets. The authors show that incomplete and imperfect modes of governance must be improved upon and combined in order for markets to work more efficiently. This timely book will interest practitioners and academics with backgrounds in economics, law, political science and public policy.

Introduction: 1. Manufacturing markets: what it means and why it matters? Eric Brousseau and Jean-Michel Glachant
Part I. Public and Private Complementarities in Securing Exchange: Introduction to Part I Eric Brousseau and Jean-Michel Glachant
2. Measurement systems as market foundations: perspectives from historical markets Aashish Velkar
3. How to manufacture quality: the diversity of institutional solutions and how they interact in agrifood markets Marta Fernandez Barcala, Manuel Gonzalez-Diaz and Emmanuel Raynaud
4. The law of impersonal transactions Benito Arruñada
Part II. Path Dependency and Political Constraints in Establishing Property Rights Systems: Introduction to Part II Eric Brousseau and Jean-Michel Glachant
5. 'Manufacturing markets': the efficiency advantages of grandfathering allocations over auctions Terry L. Anderson, Ragnar Arnason and Gary D. Libecap
6. Allocation in air emissions markets A. Denny Ellerman
7. Auction versus negotiation in public procurement: looking for empirical evidence Eshien Chong, Carine Staropoli and Anne Yvrande-Billon
Part III. The Political Origin of Competition: Introduction to Part III Eric Brousseau and Jean-Michel Glachant
8. Why competitive markets aren't self-actuating: the political economy of limited access John J. Wallis
9. The creation of a market for retail electricity supply Stephen Littlechild
10. The institutional design of European competition policy Antonio Manganelli, Antonio Nicita and Maria Alessandra Rossi
Part IV. The Myopia of the Public Hand: Introduction to Part IV Eric Brousseau and Jean-Michel Glachant
11. Third-party opportunism and the theory of public contracts: operationalization and applications Marian W. Moszoro and Pablo T. Spiller
12. The cycling of power between private and public sectors: electricity generation in Argentina, Brazil and Chile Witold J. Henisz and Bennet A. Zelner
13. Politics and the manufacturing of a transatlantic market for civil aviation (1944–2007) Yannis Karagiannis and Adrienne Héritier
Part V. The Challenge of Balancing Public and Private Ordering: Introduction to Part V Eric Brousseau and Jean-Michel Glachant
14. The microstructure of the first emerging markets in Europe in the eighteenth century Larry Neal
15. Money reconstructed: Argentina and Brazil after hyperinflation Jérôme Sgard
16. For a renewal of financial regulation Michel Aglietta and Laurence Scialom
Part VI. The Daily Adjustment of Market Technology: Introduction to Part VI Eric Brousseau and Jean-Michel Glachant
17. Antitrust liability in the U.S. for unilateral refusals to deal in intellectual and other property Howard A. Shelanski
18. How do firms exercise unilateral market power? Empirical evidence from a bid-based wholesale electricity market Shaun D. Mcrae and Frank A. Wolak
19. Exchanges: the quintessential manufactured markets Craig Pirrong
20. Conclusion: tatonnement in the manufacturing of markets Eric Brousseau and Jean-Michel Glachant
References
Index.

Subject Areas: Competition law / Antitrust law [LNCH], International economic & trade law [LBBM], Economics of industrial organisation [KCD], Economics [KC]